http://www.26econ.com/facebook-confuses-capital-with-revenue/ Online economics Fri, 21 Nov 2008 04:50:28 +0000 http://wordpress.org/?v=2.3.2 http://www.26econ.com/facebook-confuses-capital-with-revenue/#comment-3008 aaron Tue, 19 Feb 2008 06:01:06 +0000 http://www.26econ.com/facebook-confuses-capital-with-revenue/#comment-3008 Felix: You're right, it's more subtle. If you sell your idea, that's monetization. If the capital is invested in the business, it's not. Thanks for pointing this out. Felix: You’re right, it’s more subtle. If you sell your idea, that’s monetization. If the capital is invested in the business, it’s not. Thanks for pointing this out.

]]> http://www.26econ.com/facebook-confuses-capital-with-revenue/#comment-3006 Felix Tue, 19 Feb 2008 04:18:03 +0000 http://www.26econ.com/facebook-confuses-capital-with-revenue/#comment-3006 If it's an equity investment, it's monetization. If you sell 100% of your company for a few mil, that's monetization; same if you sell 15%. So yes, VC is absolutely a monetization strategy, insofar as the capital gets paid to you, the owner, as opposed to being investested in the business. If it’s an equity investment, it’s monetization. If you sell 100% of your company for a few mil, that’s monetization; same if you sell 15%. So yes, VC is absolutely a monetization strategy, insofar as the capital gets paid to you, the owner, as opposed to being investested in the business.

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